What is Xoom and how does it work?
Xoom is a payments app developed by PayPal. It makes sending domestic and international funds to over 160 countries quick and easy.
To use Xoom, you must first register for an account and download the mobile app. Then you can send money through the app or by logging into the Xoom website. Your money transfers can be funded by a bank account, debit card, credit card, or PayPal balance. After making a transfer, you'll be sent an email or text status alerts. You can also track the progress of your transfer within the app.
Xoom charges fees for all transfers. These fees typically start at $4.99 and go up from there. You can also use Xoom to pay a bill -- fees vary, but you can review the fee before finalizing your bill payment. Our detailed Xoom review will explain more highlights below.
Top perks
It's fast and secure
One of the biggest advantages of using Xoom over other payments apps is transfers happen quickly, usually in minutes. As for the exact timeline of a transfer, it depends on how you pay as well as the delivery method chosen.
If you use a credit card, debit card, or PayPal balance as a payment method, a Xoom transfer can often arrive instantly -- or within a few minutes. But, this can be pricey, especially if you use a credit card.
Some destinations may require more time for a transfer, even if you use the above funding methods. Using a bank account will usually slow down the transfer process and it may take a few days to complete your money transfer. It's important to note that larger money transfers may also take longer than small money transfers.
Security is an important consideration when you use any personal finance app or payments app. Xoom uses 128-bit data security encryption to keep your data private. This means you can feel confident that your personal and financial data is protected.
Low transfer minimum
Xoom's low transfer minimum lets you send as little as $10.
Multiple transfer options and delivery methods
Another perk to using Xoom is that this international money transfer app lets you fund and deliver currency in various ways. With Xoom, you can use the following methods to send funds:
- Bank transfer
- Debit card
- Credit card
- PayPal balance
There are also multiple ways to deliver the funds you send with Xoom. This varies depending on the country that you're sending the money to, but generally, Xoom lets people receive money via the following methods:
- Debit card deposit
- Bank deposit
- Cash pickup
- Door-to-door delivery
Recipients don't need to have or use the app
Some payment apps require both the sender and the recipient to use the app. With Xoom, that's not the case. You can send the money to someone regardless of whether they have a Xoom account.
You can pay bills with Xoom
You can also use Xoom to pay utility bills, insurance, and loan bills. While this feature exists, at this time, it's only available for a limited number of countries. And you'll need to provide account details before making a bill payment. Transaction fees for paying bills vary, but Xoom shows the fee on the final review screen before finalizing the transaction.
What could be improved
There are limits to how much you can send
It's worth noting that there are limits on how much money you can send with this money transfer service. These limits vary depending on where you're sending the money from, how the money is delivered, payment partner limits, and your sending level. Knowing these limits is essential, especially if you plan to use Xoom to send large amounts of money.
What are sending levels? Xoom has sending levels, rated from 1 to 3 depending on how much required documentation you've provided as verification. You can move up in levels by providing more documentation -- for example, your Social Security number or passport details, copies of bank statements, or driver's license.
If you're unsure what level you're at, you can check within the Xoom app.
Here are the sending limits for users sending funds from the United States:
Bank deposit maximums